Broke and Blackout (2000–2004)
On June 6, 2000, Hed PE appeared on the tribute album Nativity in Black II, covering Black Sabbath's "Sabbra Cadabra". Hed PE released their second studio album, Broke on August 22, 2000. It peaked at No. 63 on the Billboard 200, while its first single, "Bartender", peaked at No. 23 on the Billboard Mainstream Rock Tracks chart and at No. 27 on the Modern Rock Tracks chart. AllMusic's Jason D. Taylor wrote: "Broke may have not found as much success in the competitive mainstream market as some would have liked, and even despite its distinct departure from the group's debut, it is an album that shows more vision than other rap-tinged rock albums to come out in 2000." The most negative response to the album came from critics who viewed its lyrics as misogynistic. Jared Gomes denied that he was sexist in a 2001 Kerrang! magazine feature about sexism in rock music, saying that some of his lyrics were deliberately controversial in order to provoke a reaction from people. He also noted that his lyrics offended other members in Hed PE, but they "live[d] with it".
On October 27, 2000, Gomes was arrested for possession of marijuana while the band was performing in Waterbury, Connecticut. He was released on a US$1,500 bond. In 2001, Hed PE performed on the Ozzfest tour alongside bands such as Korn, Static-X, and System of a Down. A music video for "Killing Time", the second single from Broke, was produced in promotion of the film 3000 Miles to Graceland, which featured the song on its soundtrack.
Hed PE released their third studio album, Blackout, on March 18, 2003. It peaked at No. 33 on the Billboard 200, while its title track peaked at No. 21 on the Mainstream Rock Tracks chart and at No. 32 on the Modern Rock Tracks chart. Allmusic's Johnny Loftus wrote that "While it expands on melodic elements that had previously played a supporting role in the band's sound, Blackout also delivers truckloads of crushing guitar and pounding rhythm. And whether or not it is the presence of a top-line producer, (hed) pe have figured out a way to imbue their aggressive mix of heavy rock and hip-hop with some serious hooks." Guitarist Jaxon joined the band in early 2004. He is the fourth person to fill this position.
